Multiple Real Estate Appraisals: 10 Major Benefits

When homeowner sell houses does it pay to take the extra time and trouble to get multiple real estate appraisals? When the benefits are listed it would seem the answer is a resounding yes. Sure it takes longer to do and it places many more factors into the home selling equation. For some homeowners creating more decisions they need to make is not what they want to do, but there are good reasons to get multiple real estate appraisals before you sell. For most homeowners their home is single most valuable tangible asset they own so it's worthwhile to look at the benefits of multiple real estate appraisals. Here are 10 of the most obvious benefits.

1. You'll gain a better idea of what needs to be fixed up and spruced up to increase a homes value at selling time.
One real estate agent may say fix the cracks in the front porch steps, paint the walls a neutral color, and replace the carpeting in the recreation room. Another may recommend some new furniture and lighting fixtures. A third real estate agent might say don't sink any more money into the house because you won't recover it at sales time. Regardless of what is recommended, after three agents have shared their knowledge with you on what works and what doesn't you'll be less likely to male a mistake in this area. For example if three different real estate agents tell you your home needs more curb appeal, you'll not only know to focus your efforts there but you'll likely know just what needs to be done.

2. All real estate agents don't offer the same same services.
Even if they all say they're full service agents, with multiple real estate appraisals being done you'll find that there are differences in what full service means. one may list your home only with one listing service, such as the national MLS. Another may include the MLS, a local version of the MLS, major newspapers in your area, and even television. A third might include all of that and streaming video of your home or up to a dozen color photos of your home.

3. Competition between real estate agents for your business is good for the homeowner.
Multiple real estate appraisals is the best way to know how much value your getting in terms of a real estate agent' s commission for selling your house. With multiple real estate appraisals being done you may find that you are being quoted different commission rates from each agent. Having multiple real estate appraisals done places you in the best position to see where the most value is. By letting the agents know you are looking for the best value among several agents you may even get a reduced rate. Agents want your business.

4. Choose the agent you are most comfortable with.
Even if their commissions are the same and the services very similar getting multiple real estate appraisals allows you to pick the agent you feel most comfortable with. This cannot be over emphasized.

5. Commitment period.
When you sign on with an agent it's usually an exclusive arrangement giving the agent exclusive right to sell your home over all other agents. With multiple real estate appraisals each agent may ask you to commit to a different time period, say 4 months, 6 months and 12 months. It's usually an advantage to the homeowner to take the shortest period. That way if the home doesn't sell a change of agents is an option. With multiple real estate appraisals negotiating this commitment time period may be an option.

6. Multiple real estate appraisals gives you a better idea of where to set your asking price and tells you a lot about the agent.
With multiple real estate appraisals you'll surely wind up with three different answers to the question, what should the asking price be for your home. For example, agent #1 would set it at $183 thousand dollars and charges 7% commission. Agent #2 would set it at $174 thousand and charges 5% commission. Agent #3 would set it at $154 thousand and charges 3% commission. Why such a spread? Agent #3 is pricing your home for a quick sale. On 3% commission he works on volume. Agent #1's proposed asking price is very high and he may urge you to take less when an offer comes in, but you'll also be paying him 7%. Without multiple real estate appraisals you would not be in a position to see the approach these agents take to selling homes.

7. More comparables, better comparables.
Real estate agents determine the market vague of your home by reviewing what are called comparables. Comparables are homes that have recently sold in your immediate area that are very similar to yours. If you have multiple real estate appraisals done you'll not only have more comparables to learn from, you'll also see how each real estate agent you've called in values these comparables. You'll also learn how many comparables an agent based your home's value on and how recent the sales were. Perhaps an indication of how thorough an agent will be.

8. If it doesn't work out with one agent.....
The best plans of homeowners and agents don't always work out, but your ahead of the game if you've had multiple appraisals done. You don't have to start from scratch.

9. It doesn't cost anything to get multiple real estate appraisals.
They're free. All it costs is your time.

10. For sale by owner.
Ultimately you may decide that the commissions are too high compared to the services offered for a real estate agent's services. If you decide to go the for sale by owner route if you have had multiple real estate appraisals done you automatically avoid the #1 mistake for sale by owner homeowners make which is, not enough information about the value of their home. They set the asking price too high or too low. Your not likely to do that after multiple real estate appraisals from, for example, three real estate agents.

Is it worth the extra decisions and time. Multiple real estate appraisals sounds like a winner for the homeowner.